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BTB REIT Un (TSE:BTB.UN)
TSX:BTB.UN
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BTB REIT
(TSX:BTB.UN)
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Rating:78Outperform
Price Target:
C$4.50
â–²(8.96% Upside)
BTB REIT's strong valuation and technical indicators are the most significant factors contributing to its high score. The company's robust financial performance and positive earnings call sentiment further support the stock's attractiveness. However, high leverage and industrial vacancy challenges are risks to monitor.
Positive Factors
Revenue Growth
The robust revenue growth indicates strong demand and effective portfolio management, contributing to sustainable financial performance.
Leasing Activity
Strong leasing activity, including major agreements, enhances occupancy rates and ensures steady rental income, supporting long-term stability.
Rental Spreads
Higher rental spreads reflect strong market positioning and pricing power, contributing to improved profitability and cash flow.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to interest rate changes, impacting long-term health.
Industrial Vacancy
Significant industrial vacancies can reduce occupancy rates and rental income, challenging cash flow and financial performance.
Decline in Free Cash Flow
A decline in free cash flow growth may hinder investment capacity and limit the ability to manage debt, affecting future growth potential.
BTB REIT (BTB.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$364.55M
Dividend Yield7.37%
Average Volume (3M)107.12K
Price to Earnings (P/E)8.8
Beta (1Y)0.81
Revenue Growth0.92%
EPS Growth92.93%
CountryCA
Employees81
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.11
Shares Outstanding88,268,680
10 Day Avg. Volume159,813
30 Day Avg. Volume107,124
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)0.60
Price to Sales (P/S)2.27
P/FCF Ratio4.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.08Price Target Upside-1.21% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BTB REIT Business Overview & Revenue Model
Company DescriptionBTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. As at November 10th, 2020, BTB owns 64 retail, office and industrial properties for a total leasable area of approximately 5.3 million square feet and an approximate total asset value as of September 30th, 2020 of approximately of $946M.
How the Company Makes MoneyBTB REIT generates revenue primarily through the rental income derived from its properties. This includes leasing agreements with commercial tenants in its diversified portfolio, which spans office spaces, retail units, and industrial properties. The company benefits from long-term lease contracts that provide consistent cash flow and contribute to its financial stability. Additionally, BTB REIT may realize capital appreciation through property improvements and strategic acquisitions, further enhancing its income potential. Partnerships with property management firms and local real estate brokers can also contribute to optimizing occupancy rates and tenant retention, thereby boosting overall revenue.
BTB REIT Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong leasing and financial performance with significant increases in rental spreads and improvements in payout ratios. However, challenges in industrial vacancies and impacts from lease cancellations were noted. The overall sentiment leans towards positive due to the outweighing highlights.Q3-2025 Updates
Positive Updates
Strong Leasing Activity
Total leasing activity reached 280,000 square feet for the quarter, with notable new lease agreements, including an 80,000 square feet lease with Kraft-Heinz and a 10-year lease with SFL Gestion de Patrimoine.
Significant Increase in Rental Spreads
Achieved a 14.5% increase in renewal rates, the highest spread compared to previous years, with a 15.4% increase in suburban office and 8.3% in necessity-based retail segments.
Positive Financial Performance
Rental revenue increased by 1.1%, NOI by 5.9%, and cash NOI by 4.2% compared to the same quarter last year. FFO adjusted per unit increased by 7.5%, with AFFO adjusted per unit up by 4.1%.
Improved AFFO Payout Ratio
AFFO adjusted payout ratio improved to 74.3% from 77.2% last year, indicating better financial health and efficiency.
Negative Updates
Impact of Lease Cancellations
Cash NOI was negatively impacted by the departure of tenants in the industrial segment and the impact of a short-term lease on a purchased property.
Challenges in Industrial Vacancy
The occupancy rate was affected by a 132,000 square feet vacancy at a property in Laval, impacting the rate by 221 basis points.
Company Guidance
During the BTB Real Estate Investment Trust's Q3 2025 conference call, management provided comprehensive guidance on various metrics. The portfolio size was reported at 6 million square feet, with lease renewals and new leases totaling 280,000 square feet. The fair value of investment properties was $1.2 billion, and the occupancy rate stood at 91.5%. The portfolio composition included 41% suburban office properties, 36% industrial properties, and 23% necessity-based retail. Notable transactions included the disposal of a Quebec City property for $10.5 million and a small retail property in Terrebonne for $3.1 million. Financially, the rental revenue for the quarter was $32.9 million, a 1.1% increase from the previous year. NOI and cash NOI saw increases of 5.9% and 4.2%, respectively. FFO adjusted per unit rose by 7.5% to $0.115, and AFFO adjusted per unit increased by 4.1% to $0.101. The AFFO payout ratio improved to 74.3%. The weighted average cap rate remained stable at 6.7%, and the total debt ratio was 56.8%. The call emphasized strong leasing efforts and financial resilience, with management highlighting a 14.5% increase in rental spreads and a robust leasing activity covering 10% of the portfolio.BTB REIT Financial Statement Overview
Summary
BTB REIT demonstrates solid profitability and cash flow generation, with strong margins and positive free cash flow growth. However, the high debt-to-equity ratio suggests potential leverage risks. The negative revenue growth rate in the TTM period is a concern that needs monitoring. Overall, the company maintains a stable financial position with room for improvement in revenue growth.Income Statement
BTB REIT shows a stable gross profit margin around 58% and a consistent net profit margin close to 30% over the TTM period. However, the revenue growth rate has turned negative at -1.29% in the TTM, indicating a potential slowdown in revenue generation. The EBIT and EBITDA margins remain strong, reflecting efficient cost management.Balance Sheet
The company's debt-to-equity ratio is relatively high at 1.49, indicating significant leverage, which could pose risks if not managed properly. Return on equity is modest at 8.03%, suggesting moderate profitability. The equity ratio is stable, indicating a balanced asset structure.Cash Flow
BTB REIT's free cash flow growth rate is positive at 15.07% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.37, and the free cash flow to net income ratio is 1.0, indicating efficient conversion of income into cash.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.47M | 130.03M | 127.83M | 119.50M | 100.34M | 92.97M |
| Gross Profit | 75.86M | 75.05M | 75.38M | 70.43M | 56.34M | 51.26M |
| EBITDA | 77.69M | 75.84M | 71.30M | 63.12M | 49.58M | 44.61M |
| Net Income | 42.15M | 38.74M | 36.60M | 38.15M | 17.36M | -22.60M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.26B | 1.23B | 1.18B | 1.13B | 926.67M |
| Cash, Cash Equivalents and Short-Term Investments | 5.52M | 2.47M | 912.00K | 2.40M | 7.19M | 9.06M |
| Total Debt | 724.32M | 735.24M | 724.23M | 692.15M | 687.72M | 552.49M |
| Total Liabilities | 756.99M | 761.72M | 749.99M | 717.27M | 725.48M | 584.60M |
| Stockholders Equity | 498.53M | 494.28M | 477.65M | 462.07M | 404.43M | 342.07M |
Cash Flow | ||||||
| Free Cash Flow | 60.46M | 66.00M | 70.80M | 131.95M | 56.34M | 45.97M |
| Operating Cash Flow | 60.51M | 66.00M | 70.85M | 66.24M | 56.54M | 46.15M |
| Investing Cash Flow | -3.21M | -19.58M | -46.38M | -65.71M | -71.73M | 12.13M |
| Financing Cash Flow | -55.02M | -44.87M | -25.96M | 19.48M | 13.32M | -51.02M |
BTB REIT Technical Analysis
Positive
4.13
Price Trends
3.97
Positive
3.84
Positive
3.61
Positive
Market Momentum
0.05
Negative
68.52
Neutral
80.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Positive. The current price of 4.13 is above the 20-day moving average (MA) of 4.05, above the 50-day MA of 3.97, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BTB.UN.
BTB REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$442.10M | 11.85 | 7.24% | 6.89% | 2.81% | 9677.19% | |
78 Outperform | C$364.55M | 8.76 | 8.60% | 7.37% | 0.92% | 92.93% | |
75 Outperform | C$227.46M | 11.82 | 6.20% | 8.65% | 2.69% | -45.80% | |
75 Outperform | C$119.26M | 8.91 | 10.16% | 6.15% | 3.20% | 39.37% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | C$269.58M | -1.67 | -40.17% | 269.20% | -33.76% | -125.67% | |
55 Neutral | C$418.53M | -9.20 | -4.91% | 3.85% | -5.37% | 13.86% |
* Real Estate Sector Average
TSE:BTB.UN
BTB REIT
4.13
1.10
36.30%
TSE:ERE.UN
European Residential Real Estate ate Investment Trust
1.16
0.28
31.82%
TSE:FCD.UN
Firm Capital Property
6.16
0.96
18.46%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.79
1.01
21.13%
TSE:MRT.UN
Morguard Real Estate ate
6.32
1.04
19.60%
TSE:PRV.UN
PRO Real Estate Investment
6.59
1.73
35.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.